Arabian Mills for Food Products Co. Announces strategic projects to expand its production capacity in Riyadh and Hail.
| Element List | Explanation |
|---|---|
| Introduction | Arabian Mills Company for Food Products announces that its Board of Directors has approved the implementation of a series of strategic projects in its branches in Riyadh and Hail, as part of its expansion plans to develop production operations and enhance operational capacity.
These projects include:
- Establishing a new flour mill at the Riyadh branch. - Establishing a new feed mill at the Riyadh branch. -Establishing new warehouses in the Riyadh branch. - Developing the flour mill at the Hail branch.
The aim of these projects is to increase the daily production capacity of the plants as follows: - Increasing the daily flour production capacity at the Riyadh branch by 800 tons, bringing the total to 3,870 tons. - Increasing the daily feed production capacity at the Riyadh branch by 400 tons, bringing the total to 700 tons. - Increasing the daily flour production capacity at the Hail branch by 150 tons, bringing the total to 750 tons.
This step comes as part of the company’s commitment to achieving its strategic vision of strengthening food security in the Kingdom and meeting the growing demand for its products with high quality and advanced operational efficiency. |
| Date of Board Resolution in Regard to the Project | 2025-09-30 Corresponding to 1447-04-08 |
| Project Start Date | The projects are expected to commence, following the receipt of regulatory approvals, as follows:
- The flour mill project at the Riyadh branch is expected to begin in the Q1 of 2026. - The feed mill project at the Riyadh branch is expected to begin in the Q1 of 2026. -The warehouse project at the Riyadh branch is expected to begin in Q1 of 2026. - The flour mill upgrade project at the Hail branch is expected to begin in the Q4 of 2025. |
| Project Cost | The estimated cost for each project is as follows:
– The estimated cost for the flour mill project at the Riyadh branch is approximately 347 million SAR. – The estimated cost for the feed mill project at the Riyadh branch is approximately 57 million SAR. -The estimated cost for the warehouse project at the Riyadh branch is approximately 43 million SAR – The estimated cost for the upgrade project at the flour mill at the Hail branch is approximately 14 million SAR. |
| Financing method for the project | The projects will be financed from the company’s available cash liquidity and Sharia-compliant banking facilities. |
| Expected completion date of the project | The projects are expected to be completed as follows:
– The construction of the flour mill at the Riyadh branch is expected to be completed in Q1 of 2028. – The construction of the feed mill at the Riyadh branch is expected to be completed in Q1 of 2028 -The construction of the warehouse project at the Riyadh branch is expected to be completed in Q1 of 2028. – The upgrade works for the flour mill at the Hail branch are expected to be completed in Q4 of 2026 |
| Expected Financial Impact of the Project on the Company’s Results | These projects are expected to have a positive impact on the company’s financial performance following the commencement of commercial operations at the Riyadh flour and feed mills and the completion of the flour mill upgrade in Hail.
With regard to the Riyadh branch warehouses, this development is not expected to have a material direct financial impact on the company’s results; however, it is anticipated to have a positive impact on the company’s strategic and operational performance upon commencement of operations. |
| The Start of the Expected Impact of the Project on the Company’s Results | The financial impact of these projects is expected to begin as follows:
– For the flour mill project at the Riyadh branch: in Q2 of 2028. – For the feed mill project at the Riyadh branch: in Q2 of 2028. – For the warehouse project at the Riyadh branch: in Q2 of 2028. – For the flour mill upgrade project at the Hail branch: in Q1 of 2027. |
| Expected Date for the Pilot Production of the Project to Begin | The expected dates for the start of trial production for the projects are as follows:
– The expected date for the flour mill at the Riyadh branch: Q1 of 2028 – The expected date for the feed mill at the Riyadh branch: Q1 of 2028 – The expected date for the warehouses at the Riyadh branch: Q1 of 2028 – The expected date for the flour mill at the Hail branch: Q1 of 2027. |
| Duration of the pilot production of the project | The trial production duration for each project is as follows:
– One month for the flour mill project at the Riyadh branch. – One month for the feed mill project at the Riyadh branch. – One month for the warehouse project at the Riyadh branch. – One month for the flour mill upgrade project at Hail branch. |
| Expected date for the commercial production of the project | The expected dates for the start of commercial production are as follows:
– In Q1 of 2028 for the flour mill at the Riyadh branch. – In Q1 of 2028 for the feed mill at the Riyadh branch. – In Q1 of 2028 for the warehouses at the Riyadh branch. – In Q1 of 2027 for the flour mill at the Hail branch. |
| Executing Party/Counter Party in the Project/Contract | To date, no contract has been signed with a contractor to implement the projects, and any material developments related to the projects will be announced in due course. |
| Related Parties | There are no related parties as of the date of this announcement. |
| Additional Information | The company will also announce any significant developments related to this matter as they occur, For inquiries or further information, please contact the Investor Relations Department at: [email protected] |
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